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What is an HRMS and why you should use one

EBS Integrator
May 28, 2021,

What is an HRMS? How does HR do their work behind the scenes? What software is best when it comes to hiring the best people out there, and most importantly how do you hold on to your valuable assets that are your team?

Just some of the questions we’ll try to answer today. And for this reason, we’ve knocked on the door of our very own HR department to get an inside scoop on the topic.

In comes our very own professional

First, let me introduce myself – my name is Viorica Aremescu, and I’ve worked at EBS as an HR manager for more than 3 years.

My previous line of duty involved bankcard frauds at a local bank; This exact speciality gave me ample experience to learn the true value of IT, automatization, and the human factor.

I came into the company at its early stages when the director was both a project manager and a “human resources” representative. Thus, it provided me with an opportunity to directly see the importance of an HR department, or lack thereof, and learn in leaps and strides.

Eventually by pooling our resources together, our company has grown from 10-20 people in our team to 80, and still climbing. That experience cemented the idea in me – the most important asset your enterprise has is people.

But people like any other resource requires proper management, and that’s our topic for today.

What is human resource management?

The broad definition of HRM is the following:

“Human resource management (HRM) is a systematic framework to streamline processes like – candidate selection, recruitment, induction, orientation, training, appraising, motivating, conflict resolution and compensation for your team.”

HRM Processes

In the past, your “average joe” office owner wouldn’t be worried about the quality of life and mental state of their workers, they were sure they could always get a new hiree.

However, things have change for the better; now the most important thing a company can do is care for their people. The reason for that is quite simple, the golden rule stands “happy & content workers = productive workers”.

We collectively realised that an enterprises’ relationship with their team and investing in them is a long-term endeavour that pays off much more in the long run.

So how does HRM help us exactly?

Human Resource Management (HRM) being a system it also is the core function that an HR department revolves around, and thus for many the terms are interchangeable. The following are just some things a typical HR department does:

1.      HRM helps manage and train your team

The very main function of a HR department is finding and hiring fresh staff then helping them adapt to their new environment. An HR representative is the lifeline a new employee has and the first and last refuge to retreat to in case “Becky from finances” is crampy and wants to eat an intern.

Becky from finances meme

2.      HRM tracks and manages the performance

Another core function an HR performs is the constant reinforcement of motivation for their team. As well as tracking overall productivity to help alleviate employee pains within the company and help your colleagues strive for greatness.

From finding and defining roles within the company to creating proper feedback loops, an HR department strives to push their staff to growth within the company and their professions.

3.      HRM contributes to building and nurturing company values

A well-meaning HR department with access to all the information can help align personal goals and values with those of the company. By creating and maintaining genuine positive atmosphere within the company, we create proper employee engagement and motivation.

And by nurturing good employee engagement with the company, as well as their colleagues, the whole enterprise moves faster towards their destination, whatever that may be.

4.      HRM frameworks minimize conflict and enable resolutions

By setting up proper systems in place, an HR can minimize or outright remove any potential “human nature” problems that can arise at a workplace. And an HR representative is the key factor when it comes to conflict resolutions.

HRMS meme putting out fires

5.      HRM enables positive reputation for your brand

An HR department also works closely with the marketing departments, community managers and upper management to achieve good brand reputation in employment circles. Everybody wants to work for a “good” company, and its HR’s department to help achieve that fame.

What is an HRMS then?

But because we’re a bespoke software development team and this is article is a part in Digital Transformation series – Let’s talk software.

With your enterprise growing and expanding, you will inevitably run into scalability problems, sometimes a mere human can’t do it all, but he can with proper software!

“Human Resource Management System (HRMS) – is a collection of various software, or a suite of such in a form of an application, used in managing processes related to an employee’s lifecycle.”

Don’t get intimidated by the big words of “software” and “applications”. In reality, depending on the needs and scale of your company these can be huge platforms akin to full-fledged cross integrated CRM’s and ERP’s to relatively small web applications with basic functionality and data management.

So, an HRMS is a suite of software designed to manage employee lifecycles, what does that exactly mean? To give you a better understanding let’s take look at the typical HR processes in question.

HRMS help us in the following processes:

Recruitment and follow-up for candidates

With enterprise scale, come bigger quotas to fill, more candidates to filter and screen. And an HRMS is an ideal tool to sift through all the boring tasks, enabling higher capacity that an HR department can work with.

HRMS recruiter meme

Initial stages of induction

You as an HR representative must be the one to do the onboarding personally however, you can automate a lot of smaller tasks, like reminders, progressive documentation access for a more controlled learning period.

Not to mention daily tests to help the employee retain what he has learned or did that day. Integrating it with a CRM like system, you can assign template tasks and assign basic competence tests at the end, as well as easy feedback loops on the process.

Data Management

The most obvious advantage is keeping everything on file in an orderly fashion, with tabs, tags and other ways to manipulate large fluxes of data, essential for a full ERP experience.

Employee self-service

Much of what HR does is gather and input information like birthdays, professional preferences, certificates of competence, job experiences and so much more, into the system.

Well why not give access to your colleagues to do some of the basic things by themselves, hence free up HR to do more important things.

HRM self service meme

KPI tracking and analysis

By having an exclusive, always online, and self-updating file (see employee self-service) it becomes amazingly easy to build KPI analysis on the fly on any employee.

Payrolls and Financial incentives

With an HRMS in place, you can calculate gross or net earnings, KPI’s, and make deductions or issue extra payments for extra hours, easy as pie.

Thanks to self-service options a lot of routine “document” requests for taxes or earning statements can be made by employees themselves.

Offboarding process

The end part of an employees’ lifecycle is always an arduous process, no matter how it ended, you must complete various tasks and processes. Things like taking away various accesses to data bases, removing automatic notifications from other systems like CRMs, send emails to the person in question or his team. A lot of these things can be set up to happen automatically, again freeing up time from HR.

HRSM offboarding processes Example

And these are just some of the basic most obvious benefits, we haven’t even mentioned user interface, intranet, learning environments within your HRMS and many other features.

Some HRMS for you to consider

There are so many great options on the market that its difficult to decide which one fits your bill, but here are a few for you to consider!

Gusto.com – Great HRMS with Finance and Salary put on the forefront.

Zenefits.com – A budget yet robust HRMS with focus on trimming costs.

BambooHR – Very friendly looking HRMS that prides itself on their warm hearts and well-built frameworks!

OrangeHRM – A world-wide HRIS platform with a massive number of clients under their belt, there’s a reason so many people went with OrangeHRM!

Freshworks – A minimalistic approach to HRM software, with “least” clutter according to the creators.

Greenhouse – This HRMS platform is also an HR training suite all in one, Easy to set up and get the ball rolling with your interns!

Recruitment platforms

There is a plethora of various recruitment platforms out there, all are HRMS’s, but there is one that we want to talk about, it is currently on top of it all…

The big one, the one everyone knows and uses. Possibly the biggest platform out there when it comes to technology and business industries. With up to 740 million users across the globe and with 50% of those engage with it daily; LinkedIn deserves its praise.

LinkedIn is a professional-orientated social media platform which is perfect for scouring potential candidates.

All you need to do is send a “vacancies offer” to appropriate groups by interest and tags and you have a reliable way of getting potential candidates. And then hit the personal chats with hyper personalized messages to really hit the nail on the head.

Advantages of using LinkedIn:

  • Everybody uses LinkedIn today; it became the go-to professional platform to be a part of regardless of your sphere of work. It’s a live form of a resume, that is always up to date for it’s in the best interests of everybody.
  • More than 70 percent of LinkedIn users fall under the “passive candidates” category; as such these people do not actively search for new job positions. However, they are still qualified and experienced potential candidates up for grabs, it’s just a matter of making the “right offer”.
  • Unlike CV’s sent to your inbox, you can see any endorsements and who made them, then check those people and their qualifications in turn. This in turn grants more reliable information on candidate qualifications and social skills.
  • Grouped by interests – because of the way LinkedIn works and promotes social networking; your sphere of influence will almost always stay within your sphere, thus creating “targeted audiences” when it comes to recruitment. You can be sure your vacancy offer will be seen by people who would be interested.
  • LinkedIn announces you when someone visits your page, and thus you can easily see who was/is potentially interested in your company. Remember many people are reluctant to announce their willingness to leave their current place of work.
    But their activity on LinkedIn can be a sure sign that someone qualified is up for grabs.

Addition software or Plugins:

LinkedIn is massive and thus the data flux is equally so. To help with manipulating that data like a pro, we suggest using addition software and plugins like:

Dux-Soup – Designed specifically with LinkedIn in mind Dux is a possibly the most comprehensive LinkedIn automation tool on the market!

Chatterworks – Leverage AI algorithms to help you collect, store, and use all the data like emails/phones/links/resumes and much more.

Loxo – Another robust Artificially Intelligent platform to help you manipulate all that candidate data.

SeekOut – Advanced “360-talent” platform to help you diversify your quotas!

Easyhire – A video conferencing cloud platform for ease of online interviews and everything a recruiter needs when performing interviews!

Don’t replace it all – Here’s our experience.

You might be tempted to run off and integrate your very own HRMS this instance but make note of one important thing. A piece of software, no matter how sophisticated, will never fully replace a resolute HR employee. You want a real person to do somethings, no matter what or how small it might seem.

Simple things like remembering someone’s birthday and wishing them best in the hallway will always be better than a cold pre-generated text by a module of a HRMS.

Even though an HRMS simplifies many clerical or repetitive tasks, processes like candidate interviews, onboarding, offboarding and many others will always require a “human touch”. After all a machine will never be able to replicate it, right?

Emotional Robot

Because we are still a relatively small company, we decided to break apart our HR needs into multiple smaller software’s or modules to help us:

For tasks, time management and KPI we use TeamWork as well as Microsoft Office 365.

Communication is related to Microsoft Teams, Yammer and Email.

We do our induction with the help of “Onboarding Microsoft 365”

Questionnaires with “Poll Everywhere” or Sli.do; and our BPMN 2.0 software of choice is Lucidcharts.

Conclusion

A properly set up HRMS is a sure way of freeing up some much-needed time from your HR department! This way they can focus on things that really matter, naturally that’s your team. A good HR enriches the overall positive atmosphere in your colleagues and helps them aim for the long run!

And that settles it, another page in the Digital Transformation series is covered! We certainly had fun doing the research and writing this article, how did you enjoy it?
Tell us in the comments, or better yet, what do you think the main job of an HR specialist is?

Stay classy business and tech nerds!